Paula Gold-Nocella is a Realtor, broker, and developer with more than 20 years of experience in real estate. Her latest venture, Global/Quarters is a fractional real estate brokerage with listings for shared ownership properties around the globe. As fractional ownership expands and new projects break ground around the world, Halogen Guides spoke to her about the role that real estate agents have in the sales transactions.

Halogen Guides: What kind of commission can a Realtor earn selling a fraction?

Gold-Nocella: The answer is not as straight forward as one may think. The first and simplest answer is if a Realtor were to refer a buyer to a developer or to a fractional broker, they can earn from 1 percent to 2 percent of the purchase price. What most Realtor’s don’t know is that the industry standard for fractional sales a higher commission than that of traditional real estate transaction. This is justified by the fact that you are selling one property several times over, and the purchase price is much lower per interest; and as you can imagine it is much more labor intensive dealing with multiple buyers and multiple contracts on one property. The total commission for fractional listings is often 10 percent.

HG: Do Realtors have more success with larger developments such as the Ritz-Carlton or Four Seasons, or with smaller one off boutique developments?

Gold-Nocella: I am not convinced that success has to do so much with the size of the development, but rather the quality of the development, the brand recognition and the uniqueness of the product any developer has to offer. The larger, high caliber developers you mention have brand loyalty and name recognition that equates value to the consumer and may help the Realtor to sell the properties. Although I believe that if the smaller “one off” developer has a unique product it would be just as easy to sell. In both cases, the developers may have their own sales staff or fractional broker that the originating Realtor would simply be referring their client to. The majority of Realtors do not yet understand the nuances of the fractional sales transaction which can be intimidating. Their success would be in the ability to refer their client with confidence.